DIVERGENT INEQUALITIES - THEORY AND EMPIRICAL RESULTS

Widely used summary measures of inequality or the idea of the ''disapp earing middle class'' are potentially misleading. Divergences between evidence cited and conclusions drawn include failing to distinguish be tween the concepts of inequality and polarization, and using scalar '' inequality'' measures which are not consistent with rankings based on Lorenz curves. In addition, inappropriate claims about trends in inequ ality can arise from focusing on only a sub-population such as full-ti me male workers, and failing to account for sampling variability. Thes e divergences are illustrated using Canadian data on labour incomes ov er the 1967 to 1994 period.